There are so many elements of economics we can talk about in sports. But as it’s a relatively narrow field and I believe my audience to be as wide as the contestants on The Biggest Loser at the beginning of the season, I don’t talk about it very much. But the recent NFL draft did present itself with an opportunity to explain the decision making process in football. And don’t worry, it easily transfers to just about anything.
If you aren’t a football person, you probably don’t know who Cam Newton is. The short version is that he’s a quarterback from Auburn University who was drafted to the Carolina Panthers. He was picked first which in a general sense makes him the most desirable rookie to obtain.
I say general sense because not everyone needs a quarterback, and not that wants a quarterback wants Cam Newton.
This is especially the case for Newton because he has the type of playing style that doesn’t necessarily transition well to the NFL from college. There is a history of QBs doing really well in college and sucking when they go pro, and vice versa. Newton also has some strange controversies surrounding him.
And the Carolina Panthers are themselves not in good shape either. Getting the first pick in the draft means you were the worst team in the league the prior season. They have an awful quarterback situation, recently lost a star defensive player, and their coach was fired. The rest of the teams in there division, Tampa Bay, New Orleans, and Atlanta, have all had considerable success over the last few seasons compared to the Panthers.
So now with a new coach, bouncing back from being the worst team in the league, they’ve basically decided to go all in with a risky bet on a quarterback that could very well be a waste of $50 million. Why?
Because to the Panthers he’s worth the risk. First of all, Newton is the only person in the draft drawing any level of media attention. And now that the Panthers have him, that attention is drawn on the team. With a new coach and a risky rookie QB, a lot of people will be watching the Panthers to see if things work out for them. This isn’t simply the result of going all in on a bet that might go sour. It’s a calculated move by a team that doesn’t have many other cards to play.
They could have gone with another QB, or tried to develop the talent already on staff and picked some other player with their first pick. But they went with the one guy everyone is talking about. They get lots of attention at a time when there is still uncertainty about the NFL even having a season.
I call this the Cam Newton Effect but you can call it anything you want. Call it the Donald Trump Effect, for his efforts to get media attention by focusing on the Obama birther issue. Call it anything you want. If anyone does anything that seems risky or controversial, and the payoff is media attention (and as a byproduct increased exposure or business) then that’s the Cam Newton Effect.
Photo: zennie62
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
